IRS Claims $44 Billion Against Bankrupt FTX, Alameda Research LLC Owes $20B

The Internal Revenue Service has filed claims totaling around $44 billion against FTX, a bankrupt cryptocurrency exchange, and its affiliated entities. The claims consist of 45 filings against various FTX companies, including West Realm Shires, Ledger Holdings, and Blockfolio.

The largest of the claims are a $20.4 billion and a $7.9 billion claim against Alameda Research LLC, along with two claims totaling $9.5 billion against Alameda Research Holdings Inc.

These claims are classified as “Admin Priority,” which could allow the IRS’ claims to take precedence over the claims of other creditors in a bankruptcy case. According to bankruptcy documents, the $20.4 billion claim against Alameda Research LLC is primarily for partnership taxes, while the remaining amount includes millions in withheld income taxes and payroll taxes.

While the IRS has warned crypto investors to pay their taxes for years, this is the first time the agency has pursued a crypto exchange on such a scale. The outcome of this case will have far-reaching implications for the crypto industry. Whether other regulators will follow the IRS’ lead remains to be seen.

FTX filed for bankruptcy in the United States after its founder, Sam Bankman-Fried, made a series of large donations to political campaigns. Bankman-Fried has since stated that the donations were unrelated to FTX and that the exchange remains financially sound.

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